The EBRD is considering providing a sovereign loan of up to EUR 12 million in two tranches to the Kosovo for on-lending to the regional water company Hidromorava (“RWC HM” or the “Company”):
- First tranche of up to EUR 6 million to fund the extension and rehabilitation of the wastewater collection network
- Second tranche (uncommitted) of up to EUR 6 million to fund a proportion of the construction of a new wastewater treatment plan (“WWTP”).
The loan will address critical wastewater treatment needs in the Municipality of Gjilan and will benefit an estimated 90,000 inhabitants.
The transition impact of the proposed transaction will be achieved through:
- Improvement of the operating performance of the Company via a Financial and Operational Performance Improvement Programme (FOPIP).
- Increase in the number of connections to the wastewater network and achievement of EU environmental standards above the norm in Kosovo.
- Improvement of the existing Public Service Contract (“PSC”) between the RWC and the Municipality of Gjilan.
RWC HM is a joint stock company, wholly owned by the Kosovo. The Company manages and operates the water and wastewater systems in three municipalities (Gjilan, Kamenica and Vitina) serving a total of 19,110 households. Its water division produces 7.6 million m3 of drinking water per year and collects 2.7 million m3 of wastewater.
A sovereign loan of up to EUR 12.0 million to be on-lent to RWC HM.
EUR 23.1 million including VAT. Tranche 2 is likely to be co-financed by an investment grant from an international donor.
The project has been categorised B. The project will help address current public health risks arising from poor sanitation and untreated wastewater discharges. The potential adverse future environmental and/or social impacts of rehabilitation and extension of the wastewater collection network and construction of a new 90,000 p.e. capacity wastewater treatment plant can be readily identified and addressed through adequate mitigation measures.
The existing environmental and social assessment reports are currently under review. The need for further due diligence will be decided based on this review.
This PSD will be updated once the E&S due diligence is completed to reflect the outcomes.
The project will benefit from the following post-signing TC:
- FOPIP (donor-funded) to include operational performance improvements.
- Implementation Support Services (donor-funded) will include contract management support and construction supervision.
For business opportunities or procurement, contact the client company.
EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
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Text of the PIP